If you're looking to start trading cryptocurrencies or simply want to switch to a new exchange, you might be wondering which one to choose between Plus500 and Kraken. It can be a tough decision, but fear not – we've got you covered. In this comprehensive comparison, we'll delve into the nitty-gritty of both platforms, from their user interfaces and security measures to their fees and supported coins. By the end, you'll have a clear idea of whether Plus500 or Kraken is the right fit for your investment goals. So let's dive in and see which exchange comes out on top!
Founded in 2012, Plus500 is a UK-based exchange that caters to both retail and institutional investors. The platform offers over 2800 CFDs across various financial instruments, including cryptocurrencies such as Bitcoin, Ethereum, and more.
Plus500 boasts over 20 million registered users worldwide with over 10 million app downloads on Android with an average rating of 4.4 stars based on 100,000 reviews.
Plus500 app
Kraken on the other hand was founded in 2011 and is a US-based exchange known for its security, reliability, and regulatory compliance. The platform offers various services such as spot trading, margin trading, futures trading, and staking.
Kraken exchange
Kraken provides access to buy and sell over 190 cryptocurrencies, including Bitcoin, Ethereum, and Cosmos. Kraken caters mainly to new crypto investors and has over 9 million users mainly across North America and Europe. Kraken is also available via Android and IOS and have a strong 4.3-star rating with over 20,000 reviews.
Plus500 vs Kraken Signup & KYC
When it comes to signing up for an exchange, there are a lot of factors to consider. One of the most important is the KYC requirements, as this can determine how quickly you can start trading and how much access you have to certain features.
Plus500 requires KYC verification before users can start trading but the signup process itself is quite simple. Users can sign up with basic information like their name and email, and then complete the verification process at any time.
Plus500 KYC process
However, this process can be quite extensive, with over 10 questions that test users knowledge of CFD trading. For those who are serious about trading, this is a good thing, as it shows that Plus500 is committed to ensuring that their users understand the risks involved.
Kraken also requires all their users to complete KYC verification before they can start trading. The signup process itself is also quite fast taking less than a minute to complete. Basic verification can be achieved in less than 2 minutes, which is great for those who want to start trading as soon as possible. However, the full verification process can take up to 5 days.
Plus500 vs Kraken Products & Services
When it comes to trading, both Plus500 and Kraken offer a range of products and services to satisfy the needs of a wide range of users. However, the user experience on each platform couldn't be more different.
Plus500 offers access to over 2800 CFDs across different asset classes including cryptocurrency, forex, commodities and more. When it comes to leverage, Plus500 offers a max leverage of up to 300X for professional users on forex and up to 30X for retail users on forex.
Plus500 max leverage
While the range of products is impressive, the platform itself looks outdated and uninspiring. It's clear that Plus500 is more geared towards beginners and professional tradesr who want access to a wide range of CFDs without caring all that much about the user interface.
In contrast, Kraken is a more limited platform due to US regulations. The platform is designed with beginners in mind and focuses on making buying and selling cryptocurrencies simple. In addition to spot trading, Kraken also offers cash-settled futures with different maturities and margin trading. In terms of liquidity, Kraken frequently ranks in the top 10 with daily spot trading volumes ranging from $300 to $600 million.
When it comes to trading fees for buying and selling cryptocurrencies, Plus500 charges a fee through the buy/sell spread of 0.7%. They also charge a currency conversion fee for all trades on instruments denominated in a currency different to the currency of your account. Plus500 also has an inactivity fee of $10 per month if a user doesn't login to their account for at least three months. In comparison, Kraken's spot maker fee is 0.16% while the spot taker fee is 0.26%. While their fees for futures trading are 0.02% for makers and 0.05% for takers.
When it comes to depositing fiat currencies, Plus500 and Kraken take different approaches. Plus500 offers support for major fiat currencies such as USD, GBP, and EUR and allows users to deposit via credit or debit card, PayPal, or bank transfer. All fiat deposits are free of charge for users on Plus500.
Kraken offers support for deposits with 7 fiat currencies, including USD, EUR, CAD, AUD, GBP, CHF, and JPY. The exchange offers a wide range of deposit methods such as Fedwire, SWIFT, ACH, SEPA, and FPS, among others. Most notably, Kraken offers free ACH deposits for USD, EUR, and CAD via bank transfers and SEPA, making it a great option for those looking to save on fees.
When it comes to withdrawing your funds from either Plus500 or Kraken, both exchanges provide different methods and fees for their users.
Starting with Plus500, their fiat withdrawal methods are free of charge for their users. However, it's important to note that the platform doesn't support cryptocurrencies withdrawals as they only allow users to trade CFDs. This means that you don't actually purchase the underlying asset and therefore, you can't withdraw them.
Kraken offers fiat withdrawal options for all the seven currencies they support by way of bank transfers such as ACH, SEPA, SWIFT, and FPS. Each option comes with different fees and processing times, but it's great to see that Kraken provides multiple options for its users. For example, the ACH withdrawal is free of charge, while the SEPA fee is 0.9 EUR. The SWIFT withdrawal comes with a $4 fee and the FPS withdrawal comes with a 1.95 GBP fee.
In terms of cryptocurrency withdrawals, Kraken provides access to 100s of cryptocurrencies with low fees such as Bitcoin (0.00001 BTC fee), Ethereum (0.0035 ETH) and Solana fee (0.01 SOL fee).
When it comes to choosing between Plus500 and Kraken, it ultimately depends on the user's preference and trading goals. Plus500 caters to both retail and institutional investors and offers a wider range of financial instruments. Plus500 offers access to over 2800 CFDs across different asset classes but the platform itself looks outdated and uninspiring
Kraken is known for its security, reliability, and regulatory compliance, catering more to cryptocurrency traders with a larger selection of cryptos. In contrast, Kraken's platform is designed with beginners in mind, focusing on making buying and selling cryptocurrencies simple. As for trading fees, Kraken has the lower fees between the two exchanges, with lower spot maker and taker fees for spot and futures trading.
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Author
Jack Moreau
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.
